- 27 Dec
Growth Finance For 2019
2019 is just around that corner, and the run up to the New Year is always a good time to take stock of last year's performance, and make your plans for the next year. Growth is an expectation for almost half of UK SMEs.
47% Of SMEs Expect To Grow
The Q2 2018 SME Monitor from BDRC showed that 41% of businesses said they had grown over the last year, increasing with size from 39% of those with 0 employees, up to 64% of those with between 50 and 249 employees. Furthermore, there has been a consistent increase in the number of businesses experiencing growth of more than 20% per annum, since Q2 2016. Back then the monitor reported 9% of businesses achieving that level of growth, this has now risen to 14%, increasing year-on-year.
Expectations for the future were also buoyant. The monitor showed that despite Brexit and economic concerns, 47% of SMEs are expecting further business growth over the next year.
Increases in trading volumes can put cash flow pressures on SMEs. If you are manufacturing, raw materials and factory costs can start to cause cash flow headaches when you are watching the order levels rise sharply. In the services sector, such as temporary labour recruitment, the level of staff costs can cause similar issue, as you wait for customers to pay.
There are options that will bridge that funding gap for growing companies. Receivables finance releases the cash tied up on your sales invoices immediately, so that you don't have to wait for customers to pay, constantly worrying about late payments. That cash allows an expanding business to reinvest that cash in stock, staff or raw materials, smoothing out the cash flow peaks and troughs.
We have conducted research amongst existing users of receivables finance, and they confirmed that in 87% of cases they thought that using this type of growth finance had enabled their businesses to expand and grow.
If you have plans to expand in 2019, there are sources of funding available that will grow in line with the turnover of your business. This does not work like a traditional overdraft, or loan, where the level of funding is fixed. Instead, the funding is based on the volume of invoices that you raise, so as you expand, so does the amount of funding at your disposal.
- 13 Aug
Cash Flow Finance
Cash flow finance is a term that can encompass all the invoice finance products and also some business loans. Even an overdraft might fall under that category. Pretty much any finance that is for working capital purposes i.e. not to buy an asset, could be included under this banner.APPLY FOR CASH FLOW FINANCEI thought I would check how easy it is for a company to find cash flow finance quotes...
- 06 Aug
Research Suggests Need For External Business Finance Among Growing Businesses
Interesting to read the London School of Business and Finance, quoting research by Wesleyan Bank, that apparently showed some confident growth prospects, and and appetite for external business finance amongst UK businesses.The research across 500 business owners of SMEs showed that over 50% now have more confidence in the growth prospects for their company than they did last year. In addition,...
- 03 Aug
Base Rate Increases To 0.75 Percent
Yesterday, 2nd August 2018, the Bank of England (BOE) announced its decision to increase bank rate to 0.75%, according to BBC reports. A rise of 0.25%, and only the second rise in the last decade. This marks the highest base interest rate since March 2009. There will be a whole generation in the UK that have never known interest rates to be the heady 5 to 15% levels that some of us remember...
- 08 Apr
UK Finance 2017 Statistics Indicate High Growth Business Users
UK Finance, who recently absorbed the industry body formerly known as the ABFA, have just reported on their year-end statistics for 2017, for the invoice finance and asset based lending market amongst their members.It is important to note that not all invoice finance companies are members of the UK Finance industry body, however the figures do represent a large proportion of the UK market.The...
- 19 Mar
How To Finance A Large Order
The feeling when you win a large order, or contract, can be amazing. However, the euphoria can be short lived as large sales often bring with them a number of potential problems, not least of which may be how to finance a large order.The first issue is that your resources may have to be focused on delivering against that large order. This can take your focus away from dealing with smaller...
- 18 Oct
Using Invoice Finance As Acquisition Finance
Acquisition finance can be required if you are acquiring a business, in order to pay the purchase price.The acquisition may be structured in a number of different ways. The whole of the business may be acquired e.g. by purchasing the shares of an existing company, which effectively means that the buyer acquires all the assets and the liabilities of the target company. Alternatively, the buyer may...
- 16 Oct
Marketing Ideas To Grow Your Business
This post follows on from yesterday's post about Growing The Success Of Your Business, I have noted below a few more marketing ideas to grow your business that you might find helpful. None of them are rocket science - in most cases it's just a case of putting in some effort, but in the right direction. So many businesses use a scatter gun approach to marketing which can waste your resources and...
- 15 Oct
Growing The Success Of Your Business
As a business owner the growing success of your business is likley to be something that you focus a lot of your time on - but you may also be on the look out for new ideas about how to achieve that. Below we have put together a few suggestions that might help you if you are trying to grow your business. They are not meant to be comprehensive but it will hopefully offer a few ideas that you might...
- 04 Oct
Using Invoice Finance To Fund Growth
UK businesses seem to be experiencing some growth and this is likely to create cash flow pressures that can be alleviated by using invoice finance to fund business growth.Recent results from the Bibby Financial Services Global Business Monitor survey showed that 49% of the businesses surveyed had grown their turnover during the last 12 months and 55% were expecting to grow over the next 12...